Why Leasing Warehouse Space Is Different From Commercial Real Estate

Leasing commercial real estate is different from standard real estate. However, leasing warehouse space has its differences as well. From lease terms to design and layout, there are many things to consider before signing.

Building Design and Layout

The design and layout of the warehouse should play an important role in your decision to lease or not. It should have enough parking for employees, large trucks and even extra space for trucks to turn around. You should also keep in mind if there is direct or close access to roads and major highways and interstates. That type of access is less important when leasing office space.

Also, the strength of the floor in the warehouse as well as climate control and doors are all crucial to a warehouse. The stronger the floor, the more supplies can be stored. The cheaper warehouses don’t utilize climate control. Some aren’t cooled in the summer or kept warm in the winter. This affects the supplies you store in the warehouse. Last, be sure there are enough high doors for truck docking as well as forklifts.

Terms of Lease

The terms of a warehouse lease can be compared to those of other types of commercial real estate leases. However, there are a few items to look over before signing.

Typically, warehouse rent is calculated per square foot. This can differ from office space rent and leases. Also, warehouse improvements are rarely offered simply because they aren’t necessary. If there are any changes you want to make before moving in, be sure to discuss that with the landlord. Warehouses often don’t need many improvements other than business specific items.

Something that is very specific to warehouses is that you may need to pay two different rents. Occupancy costs often require tenants to pay a low rent for the warehouse space and a higher rent for any type of office area. This is required in other commercial real estate spaces.

It is important to read through the full lease so you don’t miss any important terms that need to be negotiated before signing. Leasing commercial real estate can be a tasking process but knowing what to look for depending on the type of space is the key to success.